Posts Tagged “OBSR”

Spotlight Series: Jean-Francois Hautemulle, Unicredit Private Banking on the quandry of too much choice

August 6, 2020

A recent article in Citywire

quoted a new survey conducted by Fidelity and Morningstar that revealed the fund of funds market in Germany has recovered strongly since the financial crisis.  The shift towards open architecture approach within these funds has continued, with 63% of fund of funds now using a diverse choice of companies, compared to 56% in 2007.

Jean -Francois Hautemulle, Head of Fund Selection, UNICREDIT PRIVATE BANKING was an expert panellist in a session moderated by Richard Romer-Lee, Research Director, OBSR entitled “OPEN & GUIDED ARCHITECTURE: The Rise of Guided Architecture And The Implications For The Distributor/ Manufacturer Relationship.  He was joined on the panel by Adrian M. Weiss, Head Investment Products & Advice, CITI GLOBAL CONSUMER GROUP EMEA; Philippe Baumann, Deputy Head of Open Architecture, LOMBARD ODIER DARIER HENTSCH & CIE and Richard Vincent, Head, Open Architecture Funds, SKANDIA INVESTMENT GROUP.

In an interview for the Spotlight Series, Jean-Francois discusses his experience of open (Germany) and guided (Italy) architectures and how choice is a good thing; too much choice is paralysing.

Post Under: Distribution Strategy

Mum’s the word for simple information for distributors

June 28, 2020

Richard Romer-Lee, Research Director, OBSR speaking at FundForum International 2010

Adrian M Weiss, Citi Global Consumer Group EMEA speaking at FundForum International 2010

An expert panel comprising representatives of four different strands of the distributor base discussed the different needs and demands for open and guided architecture in the distributor manufacturer relationship during the afternoon sessions of the Fund Forum 2010 Distribution Summit. Moderated by Richard Romer-Lee, research director with OBSR, the private bank sector was covered by Philippe Baumann, deputy head of open architecture at Lombard Odier Darier Hentsch & Cie; the consumer bank was represented by Adrian M Weiss, head of investment products and advice at Citi Global Consumer Group Emea; also speaking from the point of view of the private banker was Jean Francois Hautemulle, head of fund selection at Unicredit Private Banking and while the retail sector was represented by Richard Vincent, head of Open Architecture Funds at Skandia Investment Group.

Romer-Lee opened with the view that historically, distribution systems have not served the end investors well, asking the panel how they organised governance. The results varied from Baumann’s reliance on the client relationship and providing the right fund, while Vincent said that he liked to manage expectations, employing a robust process that allowed them to deliver on the promise. Vincent had experienced frustration interacting with fund management firms particularly in instances where they were trying to take a more global view of the world. Generally, only the larger asset managers took a global view. Weiss reported that they preferred the strategic partnership route and felt that some firms did a better job than others in this department. There was a concern that reviewing and updating retail distribution might increase the cost for the investor, which was a concern.

Richard Vincent, Skandia Investment Group speaking at FundForum International 2010

Jean Francois Hautemulle, Unicredit Private Bank, speaking at FundForum 2010

On the issue of customer segmentation, Baumann reported that they had a relatively homogenous client base which was segmented by value with the product selection the same across assets. Weiss found that their products differed depending on risk parameters and Vincent reported that they took an attitudinal view of how sophisticated clients could be. Hautemulle said that they were trying to get clients to be more diversified and Vincent said that products that did well were ones that investors felt that they had an emotional bond with them. Hautemulle said: “A key thing for us is transparency and information from managers. Vincent agreed, posing the ‘mum test’ as in ‘can my mum understand this?’ as a basic level of whether information from fund managers was simple enough.

Post Under: Product Development

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